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Is Solar Worth It in Rhode Island?

March 7, 2024 | Reading Time: 6 minutes

Adopting solar is a significant investment with a variable return on investment depending on a few factors, most of them leading back to your location. These factors include available incentives, geographical longitude, local electricity rates, the real estate market, weather patterns, and grid tendencies. These determinants can help you decide if investing in solar is worth it in your area.

Rhode Island: A Small State with Big Potential

Living in Rhode Island has always ensured quick commutes, endless beach days, and ample seafood options. In the past few years, solar adoption has grown amongst Rhode Islanders, leading to the littlest state making big waves in the renewable energy industry. With the support of the local government, home and business owners are encouraged to utilize solar energy and ease pressure off the electric grid. Below we’ll analyze the factors that make solar a great investment if you’re living in Little Rhody.

Incentives

Rhode Island offers a vast amount of incentive programs including tax credits and rebates that lessen the cost of solar systems and increase adopters’ return on investment. Here is a list of some significant incentives available in Rhode Island:

See All Available Incentives

These incentives are separate from the federal solar tax credit which is available nationally and offers an additional 30% carryover credit on your tax liability until 2032.

After all incentives are applied, Rhode Islanders can enjoy more than a 40% decrease in the initial cost of their system. This is a huge margin that is not standard across all states, so taking advantage of the substantial incentives right now is wise.

Longitude

Your longitude plays a critical role in the amount of sun exposure your panels will receive throughout the year. Properties closer to the equator receive the most sun. Rhode Island is in a unique geographical position that garners enough sun for optimal energy production given the right solar technology.

Electricity Rates

Rhode Island electricity rates are notorious for being sky-high, unstable, and constantly climbing. Since Rhode Island Energy commands a majority of the electricity delivered in the state, their limited competition gives them significant control of the market.

Installing solar will decrease your dependence on the electrical grid and you’ll gain financial freedom by producing your own energy. Many systems with batteries will overproduce and can hypothetically end your subscription to the grid. Therefore, you’ll no longer be responsible for paying a monthly electric bill and once your system is paid off, you’ll experience completely free energy.

Real Estate Market

The status of the housing market in your area will determine how your property’s value is affected by solar panel installation. As of 2024, Rhode Island is experiencing a surplus of buyers and not enough sellers. This drives up property value through competition and indirectly increases interest rates as banks can become pickier with their loans.

Sellers are in a great position at this point. Properties do not last very long on the market as multiple offers are common and many homes are selling for over-asking price. Solar systems are a great asset to drive up property value even moreespecially systems that are paid off.

Weather Patterns

Living in very dry place will often lead to manual solar panel maintenance having to take place more often. Luckily in Rhode Island, all four seasons are experienced and rain, your greatest panel cleanser, is prominent throughout all of them.

Therefore, conducting solar panel maintenance to clear off dirt or debris is not usually necessary for systems in Rhode Island. Of course, if you’re surrounded by trees or live right by the ocean, you may have to clean your panels once or twice a year.

Grid Tendencies

The electrical grid is more reliable in certain areas than others. Typically, less populated areas are not prioritized during outages compared to densely populated ones. Rhode Island does have a high population rate but outages are still common and some more rural towns like Burrillville, Foster, Exeter, or Cumberland often draw the short straw when it comes to getting their power turned back on.

Solar systems equipped with batteries solve the issue of unexpected power outages. The batteries are a critical component of power security because systems without them will not be able to produce when the grid is down. The batteries allow for excess energy to be sent directly into the battery with no chance of back-feeding to the grid.

Is Investing in Solar Worth It in Rhode Island?

Taking into account these factors, solar is certainly worth investing in right now if you live in Rhode Island. The incentives alone provide incredible financial relief for the cost of the system that will quickly pay for itself given electricity rates and property values. Additionally, the geographical location and annual weather conditions make for a highly efficient, low maintenance system.

Isaksen Solar: Smart, Simple, and Successful

Isaksen Solar has installed thousands of solar systems in Rhode Island since opening in 2017. We have over 300 five-star reviews and are known for our quality products, impeccable customer service, and skillful installation. If you’re interested in increasing your energy independence, and want to see if solar could work for your home, give us a call, (508) 717-3820, or get started with your free quote.